Final answer:
Increase your Sales Forecast when positive economic indicators suggest an increase in market demand, as it often leads to more sales and revenue for your business.
Step-by-step explanation:
The situation in which you should increase your Sales Forecast for the year ahead is when there are Positive economic indicators. Positive economic indicators suggest that there may be an increase in market demand, which can lead to more sales and revenue for your business. They usually include factors such as low unemployment rates, increased consumer spending, or positive consumer confidence, all of which could point to a healthier economy and higher demand for your products or services. It is not advisable to increase the forecast if there is decreased market demand, overstock of inventory, or high competition, as these factors can negatively affect your sales.